In an effort to reduce the role it plays throughout the mortgage industry, Freddie Mac continued to shrink its book of business in June.
Although the government-sponsored enterprise bought nearly $44.1 billion worth of mortgages last month, this was offset since the company either sold or liquidated $48.2 billion worth of loans. This followed a portfolio contraction of $18 billion in May.
Although Freddie reduced its presence in the mortgage industry at an annualized rate 2.5 percent last month, the company was still very active in the loan refinance and modification sector. Specifically, the GSE conducted 6,597 modifications in June, which was a significant increase from May when just 5,091 were completed.
So far this year, mortgage records indicate that just under 29,000 borrowers have been able to restructure the rates and terms of their mortgages with the help of Freddie.
Meanwhile, the delinquency rate of households with mortgages backed by the GSE dipped 0.05 percent to just 3.45 percent, which could be an indicator that more borrowers are finding financial stability and can make their loan payments on time.